фото показано с : invezz.com

Voyager Digital Ltd (VOYG: TSE) (VYGVF: OTCQX) has today announced that it has started a voluntary Chapter 11 process saying that it is doing so to maximize value for its stakeholders. After the announcement was made, Voyager stock price took a hit and it dropped almost 12%.

As part of the Chapter 11 process, Voyager and its subsidiaries, Voyager Digital LLC and Voyager Digital Holdings, filed voluntary petitions for reorganization under Chapter 11. The petitions were filed in the U.S. Bankruptcy Court of the Southern District of New York.

Voyager is simply seeking the acknowledgment of the Chapter 11 case of Voyager in the Ontario Superior Court of Justice pursuant to the Company’s Creditors Arrangement Act.

A tweet made by Chief Executive Officer of Voyager, Stephen Ehrlich, reads:

“This comprehensive reorganization is the best way to protect assets on the platform and maximize value for all stakeholders, including customers.”

Stephen also went ahead to add:

“Voyager’s platform was built to empower investors by providing access to crypto asset trading with simplicity, speed, liquidity, and transparency. While I strongly believe in this future, the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (“3AC”) on a loan from the Company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now. The chapter 11 process provides an efficient and equitable mechanism to maximize recovery.”

Going by the tweets, it was inevitable for Voyager to take the actions it took owing to the current volatile crypto markets that have destabilized quite a number of crypto firms Three Arrows Capital is one of the victims. On June 27, Voyager issued Three Arrows Capital with a notice of default for its loan of $350 million worth of USDC and 15,250 BTC.

Upon implementation of the proposed reorganization plan, customers will be able to once again access their accounts and they will get a reinmbursed. The plan however depends on the court’s approval and the ongoing discussion with other parties.

According to the plan, customers with cryptocurrencies in their accounts will receive a combination of the cryptocurrencies in their account, proceeds from the recovery made from 3AC, Voyager tokens, and common shares in the newly reorganized company. They will also have the opportunity to decide on the proportion of the common equity of shares and crypto they want to receive although subject to a certain maximum threshold.

On the other hand customers with USD deposits in their accounts will be allowed access to their funds once a fraud prevention process and reconciliation have been completed by the Metropolitan Commercial Bank.

The post Voyager stock price: Voyager files for Bankruptcy in the US appeared first on Invezz.

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